Philippine Labor Law and Jurisprudence

What is ‘management prerogative’?

” xxx We do not think that management prerogative can ever be used as a cloak to render nugatory the constitutional mandate of security of tenure. Management prerogative cannot be so exercised with arbitrariness and in defiance of the due process of the law.”

“While the power to dismiss is a formal prerogative of the employer, this is not without limitations. The employer is bound to exercise caution in terminating the services of his employees and dismissals must not be arbitrary and capricious. Due process must be observed and employers should respect and protect the rights of their employees which include the right to labor. Indeed, to effect a valid dismissal, the law requires not only that there be just and valid cause; it must also be supported by clear and convincing evidence.”

3 thoughts on “What is ‘management prerogative’?”

Is it right to adhere with the management’s order to sign addendum to their employment contract that specifically states:
THE EMPLOYEE UNDERTAKES AND WARRANTS THAT HE OR SHE RESIGNS OR IS TERMINATED FOR CAUSE, HE SHALL NOT SEEK EMPLOYMENT IN OR BE EMPLOYED BY A COMPETITOR, SUPPLIER OR PRE-CURSOR COMPANY SIMILARLY ENGAGED IN THE BUSINESS OR IN ANY BUSINESS IN DIRECT COMPETITION WITH THEM AND ITS AFFILIATE COMPANIES WITHIN A PERIOD OF THREE (3) YEARS FROM THE DATE OF RESIGNATION OR TERMINATION FROM EMPLOYMENT? Does this provision violates the employee’s right to live and work? where is due process? Thanks. Please enlighten me on this matter. Refusal to sign the contract would compel the management to get the name of the employee for unknown purpose? Refusal to sign would mean possible ground for termination?